Indicate the effects of the following transactions listed in the following table on TCA, current ratio,...

Indicate the effects of the following transactions listed in the following table on TCA, current ratio, and net income. Assume an initial current ration of more than

TCA Current ration Effect on net income

Merchandise is sold on credit. + + +
Advances are made to Insurance company.
A fully depreciated asset was sold for $400 .
A fixed asset is sold for less than book value.
Sales tax due for the previous is paid.
Account receivables are collected.
1-year notes are issued to pay off accounts payable.
Borrowed cash of $40,000 from MO’s Bank.
Purchased equipment for $16,800 cash.
Sold $5,000 of adverting services, on account, to customers.

Expert Solution

ekkarill92 answered 1 year ago

Assume that the transactions listed in the first column of the following table are anticipated by...

Assume that the transactions listed in the first column of the following table are anticipated by U.S. firms that have no other foreign transactions. Place an “X” in the table wherever you see possible ways to hedge each of the transactions. 1. Georgetown Co. plans to purchase Japanese goods denominated in yen. 2 Harvard, Inc., sold goods to Japan, denominated in yen 3. Yale Corp. has a subsidiary in Australia that will be remitting funds to...

Effect of Transactions on Working Capital, Current Ratio, and Quick Ratio The following account balances are...

Effect of Transactions on Working Capital, Current Ratio, and Quick Ratio The following account balances are taken from the records of Liquiform Inc.: Cash $ 70,000 Short-term investments 60,000 Accounts receivable 80,000 Inventory 100,000 Prepaid insurance 10,000 Accounts payable 75,000 Taxes payable 25,000 Salaries and wages payable 40,000 Short-term loans payable 60,000 Required: 1. Use the information provided to compute the amount of working capital and Liquiform's current and quick ratios (round to two decimal points). Working capital $ Current...

Which of the following does a low current ratio indicate about a business? The business will...

Which of the following does a low current ratio indicate about a business? The business will have difficulty repaying debts. The business will exceed its financial goals. The business will accept low levels of risk. The business will increase its spending power.

Which of the following does not indicate increasing overall liquidity? an increasing current ratio an increasing...

Which of the following does not indicate increasing overall liquidity? an increasing current ratio an increasing quick ratio an increasing cash flow liquidity ratio an increasing cash conversion cycle What is the relationship between the average collection period and accounts receivable turnover? When average collection period increases, the accounts receivable turnover decreases. Both ratios are expressed in number of days. Both ratios are expressed in number of times receivables are collected per year. All of the above are correct. Firms...

Metlock, Inc. has the following transactions during August of the current year. Indicate (a) the effect...

Metlock, Inc. has the following transactions during August of the current year. Indicate (a) the effect on the accounting equation and (b) the debit-credit analysis. Aug. 1 Opens an office as a financial advisor, investing $5,400 in cash in exchange for common stock. 4 Pays insurance in advance for 6 months, $1,860 cash. 16 Receives $900 from clients for services performed. 27 Pays secretary $1,150 salary.

Indicate the effects of the following business transactions on the accounting equation for Sam's Snack Foods, a supplier of snack foods.

Indicate the effects of the following business transactions on the accounting equation for Sam's Snack Foods, a supplier of snack foods. Transaction (a.) is answered as a guide. a. Sam's Snack Foods received cash from the owner and gave capital. Answer: Increase asset (Cash); Increase equity (Sam, Capital) b. Cash purchase of land for a building site. C. Paid cash on accounts payable. d. Purchased equipment; signed a note payable. e. Performed service for a customer on account. f. Employees worked for the week but will be...

Assume that the transactions listed in the first column of the table below are anticipated by...

Assume that the transactions listed in the first column of the table below are anticipated by U.S. firms that have no other foreign transactions. Place an “X” in the table wherever you see possible ways to hedge the transaction exposure. Forward Contract Futures Contract Options Contract Long Short Long Short Call Put a. A Inc. plans to sell goods to Portugal, denominated in euro b. B Co. will import automobiles from Germany, denominated in euro c. C Corp has a...

4) The estimated price elasticities of demand for certain products are listed in the table. Indicate...

4) The estimated price elasticities of demand for certain products are listed in the table. Indicate if Product B would have a more elastic or less elastic demand and why. Product A Estimated Elasticity for Product A Product B Is Estimated Elasticity for Product B More Elastic or Less Elastic than for Product A? Beer -0.29 Samuel Adams Boston Lager Chicken -0.37 Organically raised chicken Cocaine -0.28 Illegal narcotics Cigarettes -0.25 Marlboro Lights

Listed below are several transactions that typically produce either an increase or a decrease in cash. Indicate

Listed below are several transactions that typically produce either an increase or a decrease in cash. Indicate by letter whether the cash effect of each transaction is reported on a statement of cash flows as an operating (O), investing (I), or financing (F) activity.

Discuss Tolman’s Cone Angle (TCA) method to quantify the (i) steric effects and the electronic effects...

Discuss Tolman’s Cone Angle (TCA) method to quantify the (i) steric effects and the electronic effects of P-donor ligands. 8(b) Discuss the application of the TCA concept in transition metal catalysis. 8(c) Why does PMe3 have a larger cone angle than P(OMe)3?

Question